Tupperware in a fight to survive after bankruptcy filing
Tupperware, the iconic U.S. brand known for its food storage containers, has filed for bankruptcy due to declining sales. The company, seeking court approval to initiate a sale of the business, intends to continue its operations.
Founded 78 years ago, Tupperware became so well-known that its name is often used to refer to any plastic food container. However, despite efforts in recent years to modernize its products and appeal to younger consumers, it has struggled to differentiate itself from competitors.
Last year, the company cautioned that it might face collapse unless it secured new funding.
This week, Tupperware’s shares plummeted by over 50% following reports of its bankruptcy plans. Although it experienced a temporary sales boost during the pandemic when home cooking surged, demand has steadily declined. Rising raw material costs, higher wages, and increased transportation expenses have further squeezed its profit margins.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Tupperware’s chief executive Laurie Ann Goldman said in a statement to investors.
Tupperware was founded in 1946 by Earl Tupper, who patented the containers’ flexible airtight seal.
Tupperware was a major innovation, as it utilized new plastics to keep food fresh for longer, which was invaluable when refrigerators were still too expensive for many families.
However, it was not an immediate success.
The pioneering saleswoman Brownie Wise helped turn the brand into a household name, literally.
She developed an approach in which salespeople, mostly women, sold Tupperware to other women in their homes, better known as “Tupperware parties”.
According to the company, Tupperware is now sold in 70 countries worldwide.
